Governor Polis, Legislative Leadership, and Bipartisan Legislators Announce Long-Term Solution to Make Colorado More Affordable, Reduce Property Taxes for Coloradans

DENVER - Today, Governor Polis, legislative leadership and legislators announced bipartisan,  permanent property tax relief to save Coloradans money on their property taxes now and in the future, building on the billions of dollars in temporary savings the state has provided over the last three years. 

“We are saving Coloradans money on property taxes and making Colorado more affordable. No one should be priced out of their home because they can’t afford their property tax bill and this bipartisan effort will help support current and future homeowners, as well as the success of Colorado small businesses. I appreciate the work of all those involved in achieving this important bipartisan agreement, and look forward to lowering property taxes for people across our state,” said Governor Jared Polis. 

This new legislation will extend the property tax relief passed in 2023, ensuring that Colorado homeowners won’t see an increase in their property taxes for 2024. In 2025 and beyond, this proposal would reduce property taxes by 7-10% compared to current law for homes valued at $700,000 or less. Annual savings would equal $300-$400 for a home valued at $700,000. Savings will depend on local mills and any changes in assessed home values. This bill will also support Colorado businesses by reducing the non-residential assessment rate to 25% by 2026. Finally, this legislation will protect Coloradans against future spikes in property taxes by capping local property taxes at 5.5% starting in 2025, creating certainty for homeowners and businesses.

This proposal will continue to provide more than $1 Billion in savings for homeowners and Colorado businesses, while protecting essential school funding. Last week, Governor Polis signed the 2024-25 budget, which eliminated the Budget Stabilization Factor and fully funded Colorado schools. 

Governor Polis called on the legislature to cut property taxes for Coloradans in his 2024 State of the State address. 

“I’m grateful for the hard work of the sponsors to find common ground and provide meaningful, responsible property tax reductions in a way that protects schools and avoids ballot measures that would harm Colorado communities,” said Speaker Julie McCluskie, D-Dillon. “I’m confident that by creating a separate assessment rate for schools, districts will see sustained funding increases and we will never see another budget stabilization factor. This agreement is the long-term solution Coloradans expect us to deliver and the right way forward for Colorado.”

“Over the past few years we have been engaged in ongoing conversations to find long-term, comprehensive solutions to address Colorado’s property tax challenges and save people money,” said Senate President Steve Fenberg, D-Boulder. “This session, the bipartisan Commission on Property Tax brought different perspectives to the table to find a responsible solution that balances the needs of homeowners with vital support for schools. I’m incredibly grateful for their work, and am proud of the resulting proposal: a bipartisan, permanent solution that puts politics aside and provides badly-need property tax relief to help keep Colorado affordable for years to come.”

"Coloradans are depending on us to meet the moment and provide responsible property tax relief that works for them and their families," Senator Chris Hansen, D-Denver said. "I was proud to lead the bipartisan Commission on Property Tax that spent months working hand in hand with partners across the state to develop recommendations aimed at finding a long-term solution to this challenge. This bill, which is based on those recommendations, does exactly that, and will responsibly reduce property tax rates in a way that balances the needs of homeowners with protecting critical funding for schools. I am excited about this opportunity to deliver relief for those who need it most."

“This bipartisan legislation is exactly what Coloradans want to see– lawmakers coming together at the Capitol to deliver results and protect our state from costly and divisive ballot measures that would devastate schools and critical services,” said Rep. Chris deGruy Kennedy, D-Lakewood. “After months of stakeholding, listening to experts, and working with the Minority party, we have reached a consensus that will end our property tax wars and provide long-term, real relief for the homeowners that need it most. Our bill protects school funding and ensures Colorado communities won’t be threatened by ballot efforts that jeopardize health care, school funding and public safety resources.”

“I am proud of the bipartisan work we did to bring local governments and businesses to the table to discuss meaningful property tax relief for all the people of Colorado,” said Minority Leader Rose Pugliese.

“This is huge. This bipartisan bill will reduce property taxes in Colorado and provide homeowners and business owners with immediate financial relief and drive economic growth without crippling the state's budget. This is a permanent solution for Coloradans,” said Senator Barb Kirkmeyer. 

“I’m grateful to help bring this bill forward to help save people money. This was a bipartisan effort and we are delivering for Coloradans. This proposal incorporates the voices of rural Coloradans,” said Senator Byron Pelton. 

“This bill represents the political and economic diversity of this state. It’s for the people of Colorado and our businesses, and it will save them money,” said Representative Lisa Frizell. 

“I applaud the Governor, legislators and other partners for their work on this legislation which will protect critical funding for Colorado’s world-class institutions of higher education while saving Coloradans money,” said Dr. Angie Paccione, Executive Director of the Department of Higher Education. 

This bipartisan agreement is supported by the Colorado Chamber, the Colorado Association of REALTORS, Teller County Commissioner Dan Williams, Dr. Angie Pacconie, Executive Director of the Colorado Department of Higher Education, Colorado Community College System Chancellor Joe Garcia, Todd Saliman, President of the University of Colorado, Tony Frank, Chancellor of Colorado State University and Don Suppes, President of CCI Board of Directors (Delta County). 

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